2020 Summary Annual Reports Now Online

The 2020 summary annual reports (SARs) for the NRECA Group Benefits Program and the 401(k) Pension Plan are now available on the Employee Benefits website. Give the applicable SAR to participants in your cooperative’s plan(s) no later than December 15, 2021.

The SAR is a summary of the annual Form 5500 that shows the financial status of the plans. The Employee Retirement Income Security Act (ERISA) requires that employers give the SAR to plan participants and beneficiaries. Noncompliance can result in penalties of up to $161 per day.

Download the SAR from the Employee Benefits website. There, you’ll also find information about who should receive a copy of each SAR. Paper copies are always acceptable; however, you may also use electronic methods in certain circumstances. Follow the online distribution instructions, noting that there are different electronic distribution rules for group benefit plans and retirement plans. If your co-op’s business operations have been negatively impacted by the pandemic, check the COVID-19 page on timeline extensions to find out if your co-op can use certain temporary electronic delivery methods.

Provide copies of the Group Benefits Program SAR to the following participants and beneficiaries:

• Active and disabled employees (including those employees on a leave of absence),
• Retirees,
• Retained attorneys,
• Directors,
• COBRA beneficiaries, and
• Children (custodial parents or guardians in the case of minor children) covered under qualified medical child support orders who are participating in or who have a benefit under the NRECA Group Benefits Program.

Give copies of the 401(k) Plan SAR to active and disabled employees (including those employees on a leave of absence) who are participating in or who have a benefit in the 401(k) Plan. NRECA mails copies of the 401(k) Plan SAR to participants who are required to receive the SAR but are no longer employed, retirees with account balances, alternate payees, and beneficiaries of deceased and terminated vested participants.

Finally, by December 31, 2021, download, fill out, and return the 2020 distribution acknowledgement form to create a permanent record that your co-op met the requirements. Email or fax the completed form to the benefits compliance team and keep the original in your plan files. If you have questions about the SAR, contact the benefits compliance team at 866.673.2299, option 7, or pensioncompliance@nreca.coop.